Feb 12 Gold Update on Stellar Rally through Targets

Feb 12, 2016: 10:07 AM CST

If you’ve not been watching or trading gold, you’ve missed something incredibly exciting and rare.

More than not, price trades orderly, moving from one target level to the next.

Gold, instead, shot through two key resistance targets like a rocket soaring into space!

Let’s update our Gold charts and plot the breakouts above resistance targets and note where we are now.

For some background, see the prior two updates on this rally/reversal in gold:

This time is different with a breakout” planning from last week’s post.

“Gold Trades into $1,200 – with Trade Planning”

This time was different indeed!  As traders, we assess the current key levels and then trade the movements (departures) away from (or toward) key price pivot points.

The two prior targets – on the expected rally “up away from” the $1,050 level – was $1,150 (200 day SMA) and then $1,200 (round number and prior swing high).

Price paused for one day only at these two levels and then shattered them both.

Buyers have rushed to buy gold in part due to a safety play (while stocks and oil were falling) and also to jump on board a rapidly moving market (not to be left out).

The rapid rally created a sense of urgency and impulse in the price (“get in now or miss out!”).

Here’s the reversal and incredibly powerful breakout as seen on the Weekly Trend Chart:

I’ll be covering the chart and future opportunities/trade management in this weekend’s “Cross-Market Strategy Planning Report” for members.

Note the three highlighted times during the downtrend where price broke initially above the falling 50 week EMA and then reversed lower (continuing the downtrend).

That’s not what happened this time under the “This Time it’s Different” planning scenario.

$1,250 is our short-term target and above that is the prior high into $1,300.

Continue studying this example for additional lessons you can use for the future.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “Feb 12 Gold Update on Stellar Rally through Targets”

  1. Sehwagh Says:

    It is rightly said, this is not just exciting but perhaps rare. I do feel it is awesome to be riding such opportunity, but in general a newbie is always at risk with gold trading. I avoid this unless I am absolutely certain and we are often required to invest higher amount which is something not too many newbies are willing to do including me, I do get relief in shape of OctaFX broker through their 50% bonus on deposit, and it is also use able.